Percents and Simple Interest Review

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  

• the amount of money borrowed or deposited
• the percent interest for his year
• the amount taxed
• the amount the bank owes you for being a customer at their bank

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time
• Percent Rate

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• divide the months by 12
• multiply 12 times the months
• change the months to a decimal

Ann puts $300 in a bank account earning 4% interest.  How much will she earn in interest in 1 year?

• 4
• 8
• 12
• 16

What is 7.25% converted to a decimal?

• .725
• 0.725
• 0.0725
• 7.25

A bank is offering 2.5% simple interest on a savings account.  If you deposit $5,000, what will be the total amount of money in your savings account after three years?

• $375
• $42,500
• $5,375
• $37,500

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%.  What is the total amount she will repay for the car loan?

• $504,000
• $5,040
• $23,040
• $18,000

What is 0.02 as a percent?

• 20%
• 2%
• 0.2%
• 200%

A sweater costs $39.99. Which option offers the best price for the sweater

• $10 off and then 5% off
• 40% coupon
• $15 off coupon
• Sale price of $27.99

A pair of headphones costs $59.99. Which option offers the best price for the headphones?

• $25 off coupon
• 40% coupon
• $15 off coupon
• Sale price of $27.99